Finance Minister Muhammad Aurangzeb said on Wednesday that the foundation for macroeconomic stability has been established. He cited improvements in key indicators such as a surplus current account, rising remittances, increasing exports, and higher foreign exchange reserves. Inflation has also dropped to its lowest level in six years.
Policies Drive Sustainable Growth
Speaking at the Economic Coordination Committee (ECC) meeting, Aurangzeb emphasized the government’s efforts to boost stability and achieve sustainable growth. “The current account has recorded a surplus after nearly a decade, exports are on the rise, and inflation has dropped to a six-year low,” he said.
Remittances and Business Confidence Surge
The minister revealed that remittances are expected to cross $35 billion by the end of the fiscal year, compared to $33.2 billion last year. Business confidence has also strengthened, with cement sales increasing by 5%, fertilizers by 6%, automobiles by 58%, and petroleum by 15%.
Foreign Exchange Reserves to Cover Three Months of Imports
Aurangzeb expressed satisfaction with the rise in foreign exchange reserves. He said the government aims to achieve three months of import cover by the end of the fiscal year. This development is critical for improving the country’s credit rating.
Inflation and Interest Rates Decline
The Consumer Price Index (CPI) fell to 4.9% in November 2024, the lowest level since April 2018. The policy rate has also dropped to 13%, while the KIBOR rate is just below 12%. Large companies now borrow at KIBOR-minus rates, reducing their debt servicing costs by half.
Roshan Digital Account Hits Milestone
The Roshan Digital Account has recorded $9 billion in inflows, reflecting a 31% increase. This achievement further supports the government’s economic stability measures.
Essential Commodity Prices Reduced
The ECC highlighted significant price reductions in essential goods and services. Items such as wheat flour, chilies, diesel, petrol, pulses, onions, sugar, and bread have become cheaper. These measures have eased financial pressures on citizens and improved purchasing power.
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Public-Private Partnerships for Growth
The ECC acknowledged the role of public-private partnerships in fostering economic growth. The government plans to enhance economic diversification and invest in agriculture, manufacturing, and infrastructure.
Focus on Long-Term Stability
Aurangzeb reiterated the government’s commitment to sustaining economic stability. He emphasized fiscal policies aimed at managing public finances, trade, and energy sectors. These efforts have improved domestic production and stabilized the currency.
Government Reassures Continued Efforts
The ECC reaffirmed its dedication to reforms and stabilization measures. It plans to closely monitor economic developments and take proactive steps to safeguard stability. The government aims to ensure long-term growth and improved living standards for citizens.
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